Mitsubishi UFJ Financial 6K Current report

Mitsubishi UFJ Financial (MUFG) 6-KCurrent report (foreign)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of February 2021

Commission File No. 000-54189

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

7-1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-8330, Japan

(Address of principal executive office)

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-242048) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 4, 2021


Mitsubishi UFJ Financial Group, Inc.

By:		/s/ Naoki Ueda
Name:		Naoki Ueda
Title:		Managing Director, Head of Documentation & Corporate Secretary Department,
		Corporate Administration Division

LOGO

Consolidated Summary Report

<under Japanese GAAP>

for the nine months ended December 31, 2020

February 4, 2021


Company name:		Mitsubishi UFJ Financial Group, Inc.
Stock exchange listings:		Tokyo, Nagoya, New York
Code number:		8306
URL		https://www.mufg.jp/
Representative:		Hironori Kamezawa, President & Group CEO
For inquiry:		Masahisa Takahashi, Managing Director, Head of Financial Accounting Office, Financial Planning Division
		TEL (03) 5218-8890
Quarterly securities report issuing date:		February 12, 2021
Dividend payment date:		-
Trading accounts:		Established
Supplemental information for quarterly financial statements:		Available
Quarterly investor meeting presentation:		None

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Data for the Nine Months ended December 31, 2020

(1) Results of Operations


	(% represents the change from the same period in the previous fiscal year)
	Ordinary Income					Ordinary Profits					Profits Attributable to Owners of Parent
For the nine months ended	million yen		%			million yen		%			million yen		%
December 31, 2020		4,495,026		(15.3	)		840,619		(22.7	)		607,037		3.3
December 31, 2019		5,307,196		5.7			1,086,958		(8.3	)		587,440		(32.7	)

(*)	Comprehensive income December 31, 2020: 1,079,332 million yen, 19.5 % ; December 31, 2019: 902,883 million yen, 222.8 %


	Basic earnings per share		Diluted earnings per share
For the nine months ended	yen		yen
December 31, 2020		47.27		47.09
December 31, 2019		45.48		45.31

(2) Financial Conditions


	Total Assets		Total Net Assets		*Equity-to-asset ratio ()**
As of	million yen		million yen		%
December 31, 2020		351,708,459		17,464,074		4.7
March 31, 2020		336,571,379		16,855,738		4.8

(Reference) Shareholders’ equity as of December 31, 2020: 16,587,538 million yen; March 31, 2020: 15,990,834 million yen

(*)	“Equity-to-asset ratio” is computed under the formula shown below

(Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets

2. Dividends on Common Stock


	Dividends per Share
	1st quarter-end		2nd quarter-end		3rd quarter-end		Fiscal year-end		Total
For the fiscal year	yen		yen		yen		yen		yen
ended March 31, 2020		—		12.50		—		12.50		25.00
ending March 31, 2021		—		12.50		—
ending March 31, 2021 (Forecast)								12.50		25.00

(*)	Revision of forecasts for dividends on the presentation date of this Consolidated Summary Report : None

3. Earnings Target for the Fiscal Year ending March 31, 2021 (Consolidated)

MUFG has the target of 600.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2021. (There is no change to our earnings target released on November 13, 2020.)

MUFG is engaged in financial service businesses such as banking business, trust banking business, securities business and credit card/loan businesses. Because there are various uncertainties caused by economic situation, market environments and other factors in these businesses, MUFG discloses a target of its profits attributable to owners of parent instead of a forecast of its performance.

ø Notes

(1)	Changes in significant subsidiaries during the period: No

(2)	Adoption of any particular accounting methods for quarterly consolidated financial statements: No

(3)	Changes in accounting policies, changes in accounting estimates and restatements

(A) Changes in accounting policies due to revision of accounting standards: No

(B) Changes in accounting policies due to reasons other than (A): No

(D) Restatements: No

(4)	Number of common stocks outstanding at the end of the period


(A) Total stocks outstanding including treasury stocks:	December 31, 2020	13,581,995,120 shares
	March 31, 2020	13,581,995,120 shares
(B) Treasury stocks:	December 31, 2020	737,334,050 shares
	March 31, 2020	741,363,277 shares
(C) Average outstanding of total stocks:	Nine months ended December 31, 2020	12,843,043,046 shares
	Nine months ended December 31, 2019	12,916,075,657 shares

ø This “Consolidated Summary Report”(Quarterly“Tanshin”) is outside the scope of the external auditor’s quarterly review procedure.

ø Notes for using forecasted information etc.

This financial summary report contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the company and/or the group as a whole (the “forward-looking statements”). The forward-looking statements are made based upon, among other things, the company’s current estimations, perceptions and evaluations. In addition, in order for the company to adopt such estimations, forecasts, targets and plans regarding future events, certain assumptions have been made. Accordingly, due to various risks and uncertainties, the statements and assumptions are inherently not guarantees of future performance, may be considered differently from alternative perspectives and may result in material differences from the actual result. For the main factors that may affect the current forecasts, please see Consolidated Summary Report, Annual Securities Report, Disclosure Book, Annual Report, and other current disclosures that the company has announced.

The financial information included in this financial summary report is prepared and presented in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”). Differences exist between Japanese GAAP and the accounting principles generally accepted in the United States (“U.S. GAAP”) in certain material respects. Such differences have resulted in the past, and are expected to continue to result for this period and future periods, in amounts for certain financial statement line items under U.S. GAAP to differ significantly from the amounts under Japanese GAAP. For example, differences in consolidation basis or accounting for business combinations, including but not limited to amortization and impairment of goodwill, could result in significant differences in our reported financial results between Japanese GAAP and U.S. GAAP. Readers should consult their own professional advisors for an understanding of the differences between Japanese GAAP and U.S. GAAP and how those differences might affect our reported financial results. To date, we have published U.S. GAAP financial results only on a semiannual and annual basis, and currently do not expect to publish U.S. GAAP financial results for the period reported in this financial summary report.

Mitsubishi UFJ Financial Group, Inc.

(Appendix)

Contents of Appendix


1. Consolidated Financial Statements and Notes			2
(1) Consolidated Balance Sheets			2
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			4
(3) Notes on Going-Concern Assumption			6
(4) Notes for Material Changes in Shareholders’ Equity			6
(5) Changes in Accounting Policies			7
(6) Additional Information			8

Supplemental Information:

“Selected Financial Information under Japanese GAAP For the Nine Months Ended December 31, 2020”

Mitsubishi UFJ Financial Group, Inc.

1. Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheets


(in millions of yen)	As of March 31, 2020			As of December 31, 2020
Assets:
Cash and due from banks		78,335,634			99,068,990
Call loans and bills bought		727,598			603,239
Receivables under resale agreements		24,104,564			13,992,185
Receivables under securities borrowing transactions		3,464,533			3,126,268
Monetary claims bought		6,583,403			6,135,427
Trading assets		20,250,172			20,139,617
Money held in trust		1,046,323			1,204,845
Securities		65,555,127			75,913,845
Loans and bills discounted		109,114,612			106,394,166
Foreign exchanges		1,741,290			1,657,515
Other assets		13,900,403			12,388,927
Tangible fixed assets		1,319,789			1,291,762
Intangible fixed assets		1,498,407			1,423,590
Net defined benefit assets		712,206			761,947
Deferred tax assets		127,516			137,268
Customers’ liabilities for acceptances and guarantees		8,830,436			8,473,912
Allowance for credit losses		(740,641	)		(1,005,052	)

Total assets		336,571,379			351,708,459

Liabilities:
Deposits		187,623,551			205,133,770
Negotiable certificates of deposit		7,787,524			7,878,243
Call money and bills sold		3,671,100			2,217,542
Payables under repurchase agreements		31,692,711			29,688,796
Payables under securities lending transactions		1,058,042			597,633
Commercial papers		2,162,329			1,577,287
Trading liabilities		14,067,826			13,883,864
Borrowed money		24,651,574			27,159,599
Foreign exchanges		2,223,010			2,157,618
Short-term bonds payable		962,295			896,903
Bonds payable		13,464,472			13,222,209
Due to trust accounts		9,798,688			9,817,070
Other liabilities		10,407,459			10,069,940
Reserve for bonuses		110,964			69,709
Reserve for bonuses to directors		1,446			1,265
Reserve for stocks payment		11,298			9,868
Net defined benefit liabilities		86,547			86,197
Reserve for retirement benefits to directors		1,058			841
Reserve for loyalty award credits		31,247			20,743
Reserve for contingent losses		206,029			182,419
Reserves under special laws		4,269			4,405
Deferred tax liabilities		754,111			990,629
Deferred tax liabilities for land revaluation		107,641			103,912
Acceptances and guarantees		8,830,436			8,473,912

Total liabilities		319,715,640			334,244,384

Mitsubishi UFJ Financial Group, Inc.


(in millions of yen)	As of March 31, 2020			As of December 31, 2020
Net assets:
Capital stock		2,141,513			2,141,513
Capital surplus		980,102			977,286
Retained earnings		10,855,798			11,027,340
Treasury stock		(505,518	)		(502,931	)

Total shareholders’ equity		13,471,894			13,643,208

Net unrealized gains (losses) on available-for-sale securities		2,066,363			2,742,997
Net deferred gains (losses) on hedging instruments		189,342			229,076
Land revaluation excess		158,633			151,950
Foreign currency translation adjustments		300,838			(20,138	)
Remeasurements of defined benefit plans		(159,766	)		(142,664	)
Debt value adjustments of foreign subsidiaries and affiliates		(36,470	)		(16,890	)

Total accumulated other comprehensive income		2,518,940			2,944,329

Subscription rights to shares		59			—
Non-controlling interests		864,844			876,535

Total net assets		16,855,738			17,464,074

Total liabilities and net assets		336,571,379			351,708,459

Mitsubishi UFJ Financial Group, Inc.

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income


(in millions of yen)	For the nine months ended December 31, 2019		For the nine months ended December 31, 2020
Ordinary income		5,307,196		4,495,026
Interest income		2,914,182		2,010,750
Interest on loans and bills discounted		1,811,000		1,367,636
Interest and dividends on securities		502,292		324,350
Trust fees		98,139		105,146
Fees and commissions		1,127,348		1,109,868
Trading income		213,142		278,365
Other operating income		479,921		552,411
Other ordinary income		474,461		438,483
Ordinary expenses		4,220,237		3,654,407
Interest expenses		1,532,063		619,710
Interest on deposits		545,767		220,015
Fees and commissions		175,558		164,609
Other operating expenses		176,483		276,191
General and administrative expenses		2,051,862		2,053,007
Other ordinary expenses		284,270		540,887

Ordinary profits		1,086,958		840,619

Extraordinary gains		39,756		22,883
Gains on disposition of fixed assets		7,052		15,539
Gains on sales of shares of affiliates		—		7,344
Reversal of reserve for contingent liabilities from financial instruments transactions		1		—
Gains on sales of shares of subsisidiaries		30,596		—
Gains on step acquisitions		2,105		—
Extraordinary losses		285,079		43,574
Losses on disposition of fixed assets		6,880		7,432
Losses on impairment of fixed assets		43,388		19,425
Provision for reserve for contingent liabilities from financial instruments transactions		—		136
Losses on change in equity		21,311		16,580
Losses on sales of shares of affiliates		6,072		—
Amortization of goodwill		207,425		—

Profits before income taxes		841,635		819,927

Income taxes-current		141,995		193,897
Income taxes-deferred		39,844		(42,728	)

Total taxes		181,839		151,168

Profits		659,796		668,759

Profits attributable to non-controlling interests		72,355		61,721

Profits attributable to owners of parent		587,440		607,037

Mitsubishi UFJ Financial Group, Inc.

Consolidated Statements of Comprehensive Income


(in millions of yen)	For the nine months ended December 31, 2019			For the nine months ended December 31, 2020
Profits		659,796			668,759
Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities		341,979			639,299
Net deferred gains (losses) on hedging instruments		32,252			41,991
Land revaluation excess		36			—
Foreign currency translation adjustments		(102,383	)		(279,095	)
Remeasurements of defined benefit plans		(14,991	)		16,436
Share of other comprehensive income of associates accounted for using equity method		(13,805	)		(8,058	)

Total other comprehensive income		243,087			410,573

Comprehensive income		902,883			1,079,332

(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent		822,177			1,040,064
Comprehensive income attributable to non-controlling interests		80,706			39,268

Mitsubishi UFJ Financial Group, Inc.

(3)

Notes on Going-Concern Assumption

None.

(4)

Notes for Material Changes in Shareholders’ Equity

None.

Mitsubishi UFJ Financial Group, Inc.

(5)

Changes in Accounting Policies

(Additional Information)

(Adoption of Accounting Standard for Fair Value Measurement)

Accounting Standard Board of Japan (“ASBJ”) Statement No. 30, “Accounting Standard for Fair Value Measurement”(ASBJ, July 4, 2019; hereinafter referred to as “Accounting Standard for Fair Value Measurement”) and ASBJ Guidance No.31, “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ, July 4, 2019), have been applied since the end of the previous fiscal year. In accordance with Paragraph 8 of the Accounting Standard for Fair Value Measurement, the risk adjustment method applied to determine the fair value of derivatives was modified to use as much as possible observable inputs estimated by reference to derivatives and other instruments traded in the market. This modification was made due to the application of the Accounting Standard for Fair Value Measurement. In accordance with the transitional measures set forth in Paragraph 20 of the Accounting Standard for Fair Value Measurement, the cumulative effect of retroactively applying the new accounting policy prior to the beginning of the previous fiscal year was recognized as adjustments to retained earnings at the beginning of the previous fiscal year, and the new accounting policy was applied as of the beginning of the previous fiscal year as a change in MUFG’s accounting policies.

Accordingly, the consolidated financial statements as of and for the nine months ended December 31, 2019 reflect the retroactive application of the new accounting policy.

The retroactive application of the new accounting policy resulted in an increase of ¥4,452 million in each of ordinary profits and profits before income taxes for the nine months ended December 31, 2019. In addition, due to the cumulative effect of the retroactive application of the new accounting policy on net assets as of the beginning of the previous fiscal year, the balance of retained earnings as of the beginning of the previous fiscal year decreased by ¥20,533 million.

(Adoption of U.S. Accounting Standards Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments”)

Certain overseas subsidiaries which apply Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) adopted ASU2016-13, “Measurement of Credit Losses on Financial Instruments” from the beginning of the nine months ended December 31, 2020. This update replaces the incurred loss impairment methodology in previous U.S. GAAP with a methodology that reflects expected credit losses, and full lifetime expected credit losses will be recognized upon initial recognition of a financial asset measured on an amortized cost basis by taking into account certain forecasted information such as macroeconomic indicators. In adopting the accounting standard, retained earnings were adjusted for the cumulative effect at the beginning of the nine months ended December 31, 2020.

As a result, at the beginning of the nine months ended December 31, 2020, allowance for credit losses increased by ¥172,363 million and retained earnings decreased by ¥118,374 million.

Mitsubishi UFJ Financial Group, Inc.

(6)

Additional Information

(Estimated impact of the COVID-19 pandemic relating to provision for credit losses)

MUFG Bank, Ltd. (“the Bank”), a major consolidated subsidiary of MUFG, recorded a provision for credit losses of ¥12,684 million for the nine months ended December 31, 2020 (¥45,347 million for the fiscal year ended March 31, 2020) by estimating the impact of the COVID-19 pandemic on credit risk, to the extent that such impact was considered not to have been reflected in the borrowers’ financial information as of December 31, 2020, considering the expected impact of the pandemic on the borrowers’ financial performance and on the overall economic environment.

The process for preparing the recorded provision amount involved, among other things, determining the scope of borrowers (in terms of industry, geographical region, etc.) that were expected to be significantly affected, making certain assumptions relating to economic factors based on certain scenarios, and collectively estimating the degree to which the internal credit ratings assigned to borrowers in particular industries or geographic regions would be downgraded.

Since there was no precedent or established market view regarding the extent of the pandemic or the timing of containment of the pandemic available for reference in considering the expected impact of the pandemic on economic conditions, the Bank made certain assumptions and estimated the amount, as best as it could under the circumstances, based on, among other things, such assumptions and information available from external sources and through an approval process in accordance with prescribed internal rules.

As of March 31, 2020, one of our assumptions was that economic conditions would recover to the calendar 2019 level by around the end of calendar 2020 globally. As of September 30, 2020, we updated this assumption and assumed that such economic recovery would still take some time. As a result, although the global economy has begun to recover, our assumptions included, among other things, that the pace of recovery in economic activity would be slow and that economic recovery to pre-pandemic levels, particularly in developed countries, would thus be gradual. As of December 31, 2020, our assumptions remained substantially unchanged. These assumptions, however, are highly uncertain, and, depending on future developments, significant additional provision for credit losses may be recognized for the fiscal year ending March 31, 2021 and subsequent reporting periods due to such developments affecting the impact of the COVID-19 pandemic on the financial performance of borrowers and other transaction counterparties or on the economic environment.

(Major overseas subsidiaries’ total credit costs which are expected to be reflected in MUFG’s consolidated financial statements as of and for the fourth quarter of the fiscal year ending March 31, 2021)

Major overseas subsidiaries which were consolidated based on their financial statements as of and for the quarter ended September 30, 2020 adopted ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” the new guidance that introduced the concept of current expected credit loss, as of the beginning of the first quarter of the fiscal year ending December 31, 2020. As a result, these subsidiaries record provision for allowance for credit losses by taking into account certain forecasted information such as macroeconomic indicators.

Under the new guidance, it is currently estimated that the subsidiaries’ total credit costs for the quarter ended December 31, 2020 will be approximately ¥30 billion in total. The subsidiaries’ total credit costs will be reflected in MUFG’s consolidated financial statements as of and for the quarter ending March 31, 2021.

The definition of total credit costs is described in “1. Financial Results” of “Selected Financial Information under Japanese GAAP For the Nine Months Ended December 31, 2020”.

Selected Financial Information

under Japanese GAAP

For the Nine Months Ended December 31, 2020


Mitsubishi UFJ Financial Group, Inc.

Mitsubishi UFJ Financial Group, Inc.

[Contents]



1. Financial Results	[ MUFG Consolidated ]1[ BK and TB Combined ]234	1
	[ BK Non-consolidated ][ TB Non-consolidated ]

2. Non Performing Loans Based on the Financial Reconstruction Law	[ BK and TB Combined including Trust Account ]	5
	[ BK Non-consolidated ][ TB Non-consolidated ]
	[ TB Non-consolidated : Trust Account ]

3. Securities	[ MUFG Consolidated ]	6
	[ BK Non-consolidated ][ TB Non-consolidated ]

4. ROE	[ MUFG Consolidated ]	9

5. Average Interest Rate Spread	[ BK and TB Combined ]	10
	[ BK Non-consolidated ][ TB Non-consolidated ]

6. Loans and Deposits	[ BK and TB Combined ]	11
	[ BK Non-consolidated ][ TB Non-consolidated ]

7. Statements of Trust Assets and Liabilities	[ TB Non-consolidated ]	12

(*1)	“MUFG” means Mitsubishi UFJ Financial Group, Inc.

(*2)	“BK” means MUFG Bank, Ltd.

(*3)	“TB” means Mitsubishi UFJ Trust and Banking Corporation.

(*4)	“BK and TB Combined” means simple sum of “BK” and “TB” without consolidation processes.

Note:

Accounting Standard Board of Japan (“ASBJ”) Statement No. 30, “Accounting Standard for Fair Value Measurement” and ASBJ Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair Value Measurement” have been applied since the end of the previous fiscal year.

Accordingly, the financial information of “MUFG”, “BK and TB Combined” and “BK”, for the nine months ended December 31, 2019 reflect the retroactive application of the new accounting standard, etc.

Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated


	(in millions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2020 (A)			December 31, 2019 (B)			Increase (Decrease) (A) - (B)
Gross profits		2,996,191			2,948,751			47,440
Gross profits before credit costs for trust accounts		2,996,191			2,948,750			47,441
Net interest income		1,391,201			1,382,241			8,960
Trust fees		105,146			98,139			7,006
Credit costs for trust accounts (1)		(0	)		0			(0	)
Net fees and commissions		945,258			951,789			(6,530	)
Net trading profits		278,365			213,142			65,222
Net other operating profits		276,220			303,438			(27,218	)
Net gains (losses) on debt securities		208,329			195,034			13,295
General and administrative expenses		2,023,165			2,057,138			(33,973	)
Amortization of goodwill		12,392			19,780			(7,388	)
Net operating profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill		985,419			911,392			74,026
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses		973,026			891,611			81,414
Provision for general allowance for credit losses (2)		(96,424	)		(42,560	)		(53,863	)
Net operating profits*		876,602			849,051			27,550
Net non-recurring gains (losses)		(35,982	)		237,907			(273,890	)
Credit costs (3)		(295,121	)		(111,424	)		(183,697	)
Losses on loan write-offs		(133,218	)		(115,042	)		(18,176	)
Provision for specific allowance for credit losses		(158,013	)		5,953			(163,966	)
Other credit costs		(3,889	)		(2,336	)		(1,553	)
Reversal of allowance for credit losses (4)		—			—			—
Reversal of reserve for contingent losses included in credit costs (5)		—			6,481			(6,481	)
Gains on loans written-off (6)		47,884			63,206			(15,321	)
Net gains (losses) on equity securities		72,798			53,500			19,297
Gains on sales of equity securities		120,713			117,937			2,775
Losses on sales of equity securities		(31,220	)		(36,556	)		5,336
Losses on write-down of equity securities		(16,694	)		(27,879	)		11,185
Equity in earnings of equity method investees		235,689			220,880			14,808
Other non-recurring gains (losses)		(97,232	)		5,262			(102,495	)

Ordinary profits		840,619			1,086,958			(246,339	)

Net extraordinary gains (losses)		(20,691	)		(245,322	)		224,631
Net gains (losses) on disposition of fixed assets		8,106			171			7,934
Losses on impairment of fixed assets		(19,425	)		(43,388	)		23,963
Losses on change in equity		(16,580	)		(21,311	)		4,730
Gains on sales of shares of affiliates		7,344			—			7,344
Amortization of goodwill		—			(207,425	)		207,425
Gains on sales of shares of subsidiaries		—			30,596			(30,596	)
Profits before income taxes		819,927			841,635			(21,707	)
Income taxes-current		193,897			141,995			51,901
Income taxes-deferred		(42,728	)		39,844			(82,572	)
Total taxes		151,168			181,839			(30,670	)
Profits		668,759			659,796			8,963
Profits attributable to non-controlling interests		61,721			72,355			(10,634	)

Profits attributable to owners of parent		607,037			587,440			19,597

Note: * Net operating profits = Banking subsidiaries’ net operating profits + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions

(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		(343,661	)		(84,296	)		(259,364	)

Mitsubishi UFJ Financial Group, Inc.

BK and TB Combined


	(in millions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2020 (A)			December 31, 2019 (B)			Increase (Decrease) (A) - (B)
Gross profits		1,441,357			1,447,755			(6,397	)
Gross profits before credit costs for trust accounts		1,441,358			1,447,754			(6,396	)
Net interest income		696,879			693,518			3,360
Trust fees		84,739			78,461			6,278
Credit costs for trust accounts (1)		(0	)		0			(0	)
Net fees and commissions		331,987			359,848			(27,860	)
Net trading profits		90,777			55,602			35,175
Net other operating profits		236,973			260,323			(23,350	)
Net gains (losses) on debt securities		189,084			190,522			(1,437	)
General and administrative expenses		1,000,614			1,009,891			(9,277	)
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses		440,743			437,862			2,880
Provision for general allowance for credit losses (2)		11,110			—			11,110
Net operating profits		451,854			437,863			13,991
Net non-recurring gains (losses)		(89,448	)		155,679			(245,127	)
Credit costs (3)		(101,132	)		(20,577	)		(80,554	)
Losses on loan write-offs		(17,826	)		(18,783	)		956
Provision for specific allowance for credit losses		(80,502	)		—			(80,502	)
Other credit costs		(2,802	)		(1,794	)		(1,008	)
Reversal of allowance for credit losses (4)		54			61,737			(61,682	)
Reversal of reserve for contingent losses included in credit costs (5)		448			3,439			(2,991	)
Gains on loans written-off (6)		5,494			19,668			(14,174	)
Net gains (losses) on equity securities		63,529			54,126			9,403
Gains on sales of equity securities		111,452			121,297			(9,845	)
Losses on sales of equity securities		(31,225	)		(36,680	)		5,455
Losses on write-down of equity securities		(16,697	)		(30,490	)		13,792
Other non-recurring gains (losses)		(57,843	)		37,284			(95,128	)

Ordinary profits		362,405			593,542			(231,136	)

Net extraordinary gains (losses)		(3,362	)		(404,679	)		401,316
Losses on write-down of shares of subsidiaries		—			(400,165	)		400,165
Income before income taxes		359,043			188,863			170,179
Income taxes-current		111,281			115,491			(4,209	)
Income taxes-deferred		(20,517	)		31,385			(51,902	)
Total taxes		90,764			146,876			(56,112	)

Net income		268,278			41,986			226,292


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		(84,024	)		64,268			(148,292	)

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities		251,658			247,340			4,318
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation		261,395			255,592			5,803

Mitsubishi UFJ Financial Group, Inc.

BK Non-consolidated


	(in millions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2020 (A)			December 31, 2019 (B)
	December 31, 2020 (A)			December 31, 2019 (B)
Gross profits		1,202,656			1,203,360			(703	)
Net interest income		605,283			614,960			(9,676	)
Net fees and commissions		267,588			293,015			(25,426	)
Net trading profits		87,974			50,512			37,461
Net other operating profits		241,810			244,872			(3,061	)
Net gains (losses) on debt securities		195,923			172,447			23,475
General and administrative expenses		853,730			866,966			(13,236	)
Amortization of goodwill		1,139			455			683
Net operating profits before provision for general allowance for credit losses and amortization of goodwill		350,066			336,849			13,216
Net operating profits before provision for general allowance for credit losses		348,926			336,393			12,533
Provision for general allowance for credit losses (1)		11,110			—			11,110
Net operating profits		360,037			336,393			23,643
Net non-recurring gains (losses)		(90,311	)		150,170			(240,482	)
Credit costs (2)		(101,125	)		(20,566	)		(80,559	)
Reversal of allowance for credit losses (3)		—			60,938			(60,938	)
Reversal of reserve for contingent losses included in credit costs (4)		358			3,407			(3,048	)
Gains on loans written-off (5)		5,494			19,667			(14,173	)
Net gains (losses) on equity securities		41,816			47,608			(5,791	)
Gains on sales of equity securities		76,911			96,862			(19,950	)
Losses on sales of equity securities		(22,800	)		(19,913	)		(2,887	)
Losses on write-down of equity securities		(12,294	)		(29,341	)		17,047
Other non-recurring gains (losses)		(36,855	)		39,115			(75,970	)

Ordinary profits		269,726			486,564			(216,838	)

Net extraordinary gains (losses)		(132	)		(405,076	)		404,943
Losses on write-down of shares of subsidiaries		—			(400,165	)		400,165
Income before income taxes		269,593			81,488			188,105
Income taxes-current		93,784			100,429			(6,644	)
Income taxes-deferred		(23,463	)		23,217			(46,681	)
Total taxes		70,321			123,646			(53,325	)

Net income		199,272			(42,158	)		241,430


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)		(84,162	)		63,447			(147,609	)
Provision for general allowance for credit losses		11,110			(3,192	)		14,303
Provision for special allowance for credit losses		(80,502	)		64,059			(144,562	)
Allowance for credit to specific foreign borrowers		(367	)		71			(438	)
Losses on loans write-off		(17,820	)		(18,771	)		951
Provision for contingent losses included in credit costs		358			3,407			(3,048	)
Gains on loans written-off		5,494			19,667			(14,173	)
Losses on sales of other loans, etc.		(2,435	)		(1,794	)		(640	)

Net operating profits before provision for general allowance for credit losses, excluding net gains (losses) on debt securities		153,003			163,945			(10,942	)
Net operating profits before provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation		154,857			165,111			(10,254	)

Mitsubishi UFJ Financial Group, Inc.

TB Non-consolidated


	(in millions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2020 (A)			December 31, 2019 (B)			Increase (Decrease) (A) - (B)
Gross profits		238,700			244,394			(5,693	)
Gross profits before credit costs for trust accounts		238,701			244,393			(5,692	)
Trust fees		84,739			78,461			6,278
Credit costs for trust accounts (1)		(0	)		0			(0	)
Net interest income		91,595			78,558			13,037
Net fees and commissions		64,398			66,832			(2,433	)
Net trading profits		2,803			5,090			(2,286	)
Net other operating profits		(4,836	)		15,451			(20,288	)
Net gains (losses) on debt securities		(6,838	)		18,074			(24,912	)
General and administrative expenses		146,884			142,925			3,959
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses		91,816			101,468			(9,652	)
Provision for general allowance for credit losses (2)		—			—			—
Net operating profits		91,816			101,469			(9,652	)
Net non-recurring gains (losses)		862			5,508			(4,645	)
Credit costs (3)		(6	)		(11	)		4
Reversal of allowance for credit losses (4)		54			798			(743	)
Reversal of reserve for contingent losses included in credit costs (5)		89			32			57
Gains on loans written-off (6)		0			0			(0	)
Net gains (losses) on equity securities		21,712			6,518			15,194
Gains on sales of equity securities		34,541			24,435			10,105
Losses on sales of equity securities		(8,424	)		(16,767	)		8,342
Losses on write-down of equity securities		(4,403	)		(1,149	)		(3,254	)
Other non-recurring gains (losses)		(20,988	)		(1,830	)		(19,158	)

Ordinary profits		92,679			106,977			(14,298	)

Net extraordinary gains (losses)		(3,229	)		397			(3,626	)
Income before income taxes		89,449			107,374			(17,925	)
Income taxes-current		17,496			15,062			2,434
Income taxes-deferred		2,946			8,167			(5,221	)
Total taxes		20,443			23,229			(2,786	)

Net income		69,006			84,144			(15,138	)


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		138			821			(682	)
Credit costs for trust accounts		(0	)		0			(0	)
Provision for general allowance for credit losses		223			779			(556	)
Provision for special allowance for credit losses		(168	)		18			(187	)
Allowance for credit to specific foreign borrowers		—			—			—
Losses on loans write-offs		(6	)		(11	)		4
Provision for contingent losses included in credit costs		89			32			57
Gains on loans written-off		0			0			(0	)
Losses on sales of other loans, etc.		—			—			—

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities		98,655			83,394			15,260
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation		106,538			90,480			16,058

Mitsubishi UFJ Financial Group, Inc.

2. Non Performing Loans Based on the Financial Reconstruction Law

BK and TB Combined including Trust Account


	(in millions of yen)
	As of December 31, 2020			As of March 31, 2020
Bankrupt or De facto Bankrupt		161,706			121,990
Doubtful		354,365			310,975
Special Attention		280,534			221,271
Non Performing Loans		796,606			654,237
Total loans		98,627,385			100,608,268
Non Performing Loans / Total loans		0.80	%		0.65	%

BK Non-consolidated
	(in millions of yen)
	As of December 31, 2020			As of March 31, 2020
Bankrupt or De facto Bankrupt		161,662			121,940
Doubtful		352,228			308,695
Special Attention		280,534			221,271
Non Performing Loans		794,425			651,907
Total loans		95,078,093			96,406,813
Non Performing Loans / Total loans		0.83	%		0.67	%

TB Non-consolidated
	(in millions of yen)
	As of December 31, 2020			As of March 31, 2020
Bankrupt or De facto Bankrupt		43			49
Doubtful		2,126			2,275
Special Attention		—			—
Non Performing Loans		2,170			2,325
Total loans		3,542,307			4,189,169
Non Performing Loans / Total loans		0.06	%		0.05	%

TB Non-consolidated: Trust Account
	(in millions of yen)
	As of December 31, 2020			As of March 31, 2020
Bankrupt or De facto Bankrupt		—			0
Doubtful		11			3
Special Attention		—			—
Non Performing Loans		11			3
Total loans		6,984			12,285
Non Performing Loans / Total loans		0.15	%		0.03	%

Mitsubishi UFJ Financial Group, Inc.

3. Securities

MUFG Consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

(in millions of yen)

As of December 31, 2020

As of March 31, 2020

Amount on
consolidated
balance sheet

Unrealized
gains (losses)

Amount on
consolidated
balance sheet

Unrealized
gains (losses)

Debt securities being held to maturity

3,878,776

32,992

4,165,781

12,113

(in millions of yen)

As of December 31, 2020

As of March 31, 2020

Amount on
consolidated
balance sheet

Unrealized
gains (losses)

Amount on
consolidated
balance sheet

Unrealized
gains (losses)

Available-for-sale securities

72,748,909

3,933,226

62,151,189

2,888,631

Domestic equity securities

5,014,344

3,123,719

4,141,355

2,139,981

Domestic bonds

38,612,840

170,652

27,473,106

171,378

Other

29,121,724

638,855

30,536,727

577,271

Foreign equity securities

79,745

18,378

79,521

12,671

Foreign bonds

22,943,100

516,600

24,502,462

738,144

Other

6,098,879

103,875

5,954,743

(173,544

)

Mitsubishi UFJ Financial Group, Inc.

BK Non-consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

(in millions of yen)

As of December 31, 2020

As of March 31, 2020

Amount on
balance sheet

Unrealized
gains (losses)

Amount on
balance sheet

Unrealized
gains (losses)

Debt securities being held to maturity

1,883,620

14,975

1,944,533

18,785

Stocks of subsidiaries and affiliates

625,594

377,803

627,818

(17,184

)

(in millions of yen)

As of December 31, 2020

As of March 31, 2020

Amount on
balance sheet

Unrealized
gains (losses)

Amount on
balance sheet

Unrealized
gains (losses)

Available-for-sale securities

56,166,275

2,744,489

46,321,585

1,991,487

Domestic equity securities

4,126,837

2,492,805

3,374,636

1,651,395

Domestic bonds

36,636,855

159,904

25,770,967

154,064

Other

15,402,582

91,779

17,175,981

186,027

Foreign equity securities

56,926

11,267

53,695

6,530

Foreign bonds

12,312,619

49,900

13,997,325

370,202

Other

3,033,035

30,611

3,124,961

(190,704

)

Mitsubishi UFJ Financial Group, Inc.

TB Non-consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” in addition to “Securities”.

(in millions of yen)

As of December 31, 2020

As of March 31, 2020

Amount on
balance sheet

Unrealized
gains (losses)

Amount on
balance sheet

Unrealized
gains (losses)

Debt securities being held to maturity

1,085,304

(8,495

)

1,059,871

(15,289

)

Stocks of subsidiaries and affiliates

69,111

(1,542

)

28,482

(1,873

)

(in millions of yen)

As of December 31, 2020

As of March 31, 2020

Amount on
balance sheet

Unrealized
gains (losses)

Amount on
balance sheet

Unrealized
gains (losses)

Available-for-sale securities

11,342,803

959,735

10,698,869

727,878

Domestic equity securities

920,102

567,892

807,271

432,023

Domestic bonds

1,947,748

10,766

1,710,778

16,171

Other

8,474,951

381,075

8,180,820

279,683

Foreign equity securities

Foreign bonds

6,874,919

314,070

6,616,153

262,471

Other

1,599,982

66,964

1,564,622

17,176

Mitsubishi UFJ Financial Group, Inc.

4. ROE

MUFG Consolidated


	(%)
	For the nine months ended December 31, 2020	For the nine months ended December 31, 2019
ROE	5.90	5.72

Mitsubishi UFJ Financial Group, Inc.

5. Average Interest Rate Spread

BK and TB Combined


	(percentage per annum)
(Domestic business segment)	For the nine months ended December 31, 2020	For the nine months ended December 31, 2019
Average interest rate on loans and bills discounted	0.70	0.75
Average interest rate on deposits and NCD	0.00	0.00
Interest rate spread	0.69	0.74

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted	0.74	0.79
Interest rate spread	0.73	0.79
BK Non-consolidated
	(percentage per annum)
(Domestic business segment)	For the nine months ended December 31, 2020	For the nine months ended December 31, 2019
Average interest rate on loans and bills discounted	0.72	0.78
Average interest rate on deposits and NCD	0.00	0.00
Interest rate spread	0.71	0.77

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted	0.74	0.80
Interest rate spread	0.74	0.79
TB Non-consolidated
	(percentage per annum)
(Domestic business segment)	For the nine months ended December 31, 2020	For the nine months ended December 31, 2019
Average interest rate on loans and bills discounted	0.32	0.34
Average interest rate on deposits and NCD	0.02	0.04
Interest rate spread	0.29	0.30

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted	0.63	0.66
Interest rate spread	0.60	0.61

Mitsubishi UFJ Financial Group, Inc.

6. Loans and Deposits

BK and TB Combined


	(in millions of yen)
	As of December 31, 2020		As of March 31, 2020
Deposits (ending balance)		186,768,647		169,384,048
Deposits (average balance)		182,054,745		166,255,886
Loans (ending balance)		90,741,033		92,339,389
Loans (average balance)		94,563,790		91,531,796

	(in millions of yen)
	As of December 31, 2020		As of March 31, 2020
Domestic deposits (ending balance)*		160,223,723		145,903,208
Individuals		84,594,684		79,317,655

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

BK Non-consolidated


	(in millions of yen)
	As of December 31, 2020		As of March 31, 2020
Deposits (ending balance)		175,842,163		158,248,564
Deposits (average balance)		170,960,857		154,468,309
Loans (ending balance)		87,322,567		88,258,295
Loans (average balance)		90,768,116		87,207,107

	(in millions of yen)
	As of December 31, 2020		As of March 31, 2020
Domestic deposits (ending balance)*		150,461,400		136,155,699
Individuals		77,864,835		72,414,615

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

TB Non-consolidated


	(in millions of yen)
	As of December 31, 2020		As of March 31, 2020
Deposits (ending balance)		10,926,484		11,135,484
Deposits (average balance)		11,093,887		11,787,576
Loans (ending balance)		3,418,466		4,081,093
Loans (average balance)		3,795,674		4,324,689

	(in millions of yen)
	As of December 31, 2020		As of March 31, 2020
Domestic deposits (ending balance)*		9,762,322		9,747,508
Individuals		6,729,849		6,903,040

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

Mitsubishi UFJ Financial Group, Inc.

7. Statements of Trust Assets and Liabilities

TB Non-consolidated

Including trust assets under service-shared co-trusteeship


(in millions of yen)	As of March 31, 2020			As of December 31, 2020
Assets:
Loans and bills discounted		359,832			389,735
Securities		57,931,822			56,855,241
Beneficiary rights to the trust		87,938,640			91,190,602
Securities held in custody accounts		3,798,591			4,311,309
Monetary claims		22,272,297			29,630,024
Tangible fixed assets		15,875,747			16,930,715
Intangible fixed assets		135,543			137,938
Other claims		3,759,125			2,804,325
Call loans		1,147,427			747,739
Due from banking account		8,980,934			8,990,373
Cash and due from banks		5,284,528			5,479,256
			��
Total		207,484,491			217,467,260

Liabilities:
Money trusts		25,711,403			25,625,517
Pension trusts		11,700,334			12,033,421
Property formation benefit trusts		6,842			6,725
Investment trusts		92,086,729			95,306,276
Money entrusted other than money trusts		4,939,720			5,033,310
Securities trusts		6,631,349			6,427,724
Monetary claim trusts		20,301,045			27,777,885
Equipment trusts		90,563			136,248
Land and fixtures trusts		42,300			42,220
Composite trusts		45,974,200			45,077,931

Total		207,484,491			217,467,260


Note:	1.	The table shown above includes master trust assets under the service-shared co-trusteeship between TB and The Master Trust Bank of Japan, Ltd.
	2.	Trust assets and liabilities under a declaration of trust excluded from above table are 850,748 millions of yen as of March 31, 2020 and 495,004 millions of yen as of December 31, 2020, respectively.

ROE is computed as follows:

Profits attributable to owners of parent × 4 / 3

{(Total shareholders’ equity at the beginning of the period + Foreign currency translation adjustments at the beginning of the period) + (Total shareholders’ equity at the end of the period + Foreign currency translation adjustments at the end of the period)} / 2